Multiple Choice
Suppose that all the necessary conditions exist for the realization of equal wage rates in every labor market, but that currently the wage rate in market X is higher than the wage rate in market Y. We expect that eventually the wage rate
A) in market X will increase more.
B) in market Y will decrease.
C) in market X will decrease and the wage rate in market Y will increase.
D) will not change in either market, because something out of the ordinary must have caused the wage rates in the two markets not to be equal.
E) a and b
Correct Answer:
Verified
Correct Answer:
Verified
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